Fitch rates Pimpri Chinchwad Municipal AA-(ind)

Fitch Ratings said it assigned Pimpri Chinchwad Municipal Corp. an AA-(ind) national long-term issuer rating.

The outlook is stable.

The rating reflects the company's track record of consistently generating revenue surpluses, Fitch said. The rating also benefits from the city's close proximity to Pune, making it a strong economic hub with the IT services industry complementing the traditional auto and related industries - all of which contribute to rapid urbanisation, the agency said.

The company's finances suffer from concentration risk, Fitch said, and a cyclical downturn of the auto industry will have an adverse impact on its finances.

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